A Bitcoin Metric Suggests Institutional Investors May Fight Over Just 5% of Supply
Did you know that institutional investors may have to compete for only 5% of Bitcoin’s supply? This could potentially lead to a significant increase in prices. According to a popular cryptocurrency market analyst with over 440,000 subscribers on the InvestAnswers YouTube channel, 95% of all Bitcoin in circulation hasn’t been moved in the past month. This data comes from crypto analytics firm Glassnode.
Bitcoin’s Stability Sets the Stage for Exponential Growth
Bitcoin’s stability is creating a favorable environment for exponential price growth. The analyst believes that a catalyst triggering substantial buy-side interest is necessary to initiate a bull run. Currently, only 5% of Bitcoin’s circulating supply is being actively traded, indicating a weak market. However, if there’s a significant influx of big institutional investors looking to purchase a large amount of Bitcoin, the price could skyrocket.
Bitcoin’s Scarce Supply and Potential for Price Increase
Bitcoin’s scarcity is becoming increasingly evident. The analyst reveals that when institutional investors enter the market, they will be fighting over that remaining 5% of Bitcoin. Additionally, nearly eight million Bitcoins have been dormant for five years or more, suggesting that out of the 21 million Bitcoin cap, only around 11 million are actively available. This scarcity will likely drive up the price, especially if the demand surpasses the available supply.
Hot Take: Bitcoin’s Economics and Growth Potential
The unique economics of Bitcoin emphasize its potential for growth and the unwavering belief of its holders. As more institutional investors join the market, the limited supply of Bitcoin will become even more apparent, leading to increased prices. It’s fascinating to witness the enduring faith in Bitcoin and its potential to revolutionize the world of finance.
By
By
By
By
By